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The importance of due diligence in healthcare

Hailey Marsh (hmarsh@acevedoconsulting.com) is an Associate Consultant and Jean Acevedo (jacevedo@acevedoconsulting.com) is the President and CEO at Acevedo Consulting Inc. in Delray Beach, FL.

Due diligence is defined by the Merriam-Webster dictionary as “research and analysis of a company or organization done in preparation for a business transaction.”[1] In reality, due diligence is so much more complex than just that definition, especially when it comes to the healthcare setting. Healthcare is unique in that there are multiple different risk areas, which many who are not familiar with the business side of healthcare would not know about. And, with the increasing number of private equity firms investing in varied healthcare sectors, we see the results of this naveté with increasing frequency. Due to these factors, due diligence in healthcare requires additional areas to be analyzed in addition to the ordinary legal, corporate, and financial due diligence analyzation. Some of the most important areas specific to healthcare are discussed below.

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